FORM 10-Q

                      SECURITIES AND EXCHANGE COMMISSION

                           Washington, D.C.  20549

(Mark One)

[x]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

    For the quarterly period ended  December 31, 1998
                                    -----------------
                                             or

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

     For the transition period from          to
                                    --------    --------

Commission file number    0-21718
                          -------

             BOSTON CAPITAL TAX CREDIT FUND III L.P.
-----------------------------------------------------------------
           (Exact name of registrant as specified in its charter)

           Delaware                           52-1749505
--------------------------------    -----------------------------
 (State or other jurisdiction of             (I.R.S. Employer
incorporation or organization)                Identification No.)

  One Boston Place, Suite 2100,  Boston, Massachusetts   02108
-----------------------------------------------------------------
   (Address of principal executive offices)          (Zip Code)

Registrant's telephone number, including area code (617) 624-8900
                                                   --------------

-----------------------------------------------------------------
(Former name, former address and former fiscal year, if changed
since last report)

     Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2)has been subject to such filing
requirements for the past 90 days.

                            Yes   X          No
                                ------           ------

                   BOSTON CAPITAL TAX CREDIT FUND III L.P.
             --------------------------------------------------



                        QUARTERLY REPORT ON FORM 10-Q
                   FOR THE QUARTER ENDED December 31, 1998
              -----------------------------------------------


                              TABLE OF CONTENTS
                              -----------------



 PART I - FINANCIAL INFORMATION

   Item 1.  Financial Statements..............................

            Balance Sheets....................................
            Statements of Operations..........................
            Statement of Changes in Partners' Capital.........
            Statements of Cash Flows..........................
            Notes to Financial Statements.....................
   Item 2.  Management's Discussion and Analysis of
            Financial Condition and Results
            of Operations.....................................

PART II - OTHER INFORMATION

   Item 6.  Exhibits and Reports on Form 8-K..................

            Signatures........................................





















                   Boston Capital Tax Credit Fund III L.P.

                                 BALANCE SHEETS

                                             December 31,
March 31,
                                                1998
1998
                                             (Unaudited)
(Audited)
ASSETS                                      ------------
------------

INVESTMENTS IN OPERATING
  PARTNERSHIPS (Note D)                     $110,986,281
$121,032,270

OTHER ASSETS
Cash and cash equivalents                      2,162,961
1,653,522
Investments                                    2,421,463
2,970,867
Notes receivable                               1,364,322
2,056,333
Deferred acquisition costs,
  net of accumulated amortization (Note B)     1,606,142
1,681,137
Organization costs, net of
  accumulated amortization (Note B)                9,573
67,358
Other assets                                   2,255,801
1,728,300
                                             -----------
-----------
                                            $120,806,543
$131,189,787
                                             ===========
===========
LIABILITIES

Accounts payable & accrued
  expenses (Note C)                         $    112,762        $
4,553
Accounts payable affiliates                   10,959,121
8,703,412
Capital contributions payable (Note D)         2,025,482
2,726,063
                                             -----------
-----------
                                              13,097,365
11,434,028
                                             -----------
-----------
PARTNERS' CAPITAL

Limited Partners
  Units of limited partnership interest,
  $10 stated value per BAC; 22,000,000
  authorized BACs; 21,996,102 issued and
  outstanding, as of December 31, 1998       108,521,745
120,447,861
General Partner                                 (812,567)
(692,102)
                                             -----------
-----------
                                             107,709,178
119,755,759
                                             -----------
-----------
                                            $120,806,543
$131,189,787
                                             ===========
===========

       The accompanying notes are an integral part of these
statements.
                                     1

              Boston Capital Tax Credit Fund III L.P.

                              BALANCE SHEETS

                                                     SERIES 15

----------------------------
                                            December 31,
March 31,
                                                1998
1998
                                             (Unaudited)
(Audited)
ASSETS                                       -----------
---------

INVESTMENTS IN OPERATING
   PARTNERSHIPS (Note D)                   $14,492,103
$16,246,406

OTHER ASSETS
Cash and cash equivalents                      349,183
156,717
Investments                                    128,028
125,000
Notes receivable                                32,170
110,000
Deferred acquisition costs,
  net of accumulated amortization (Note B)     249,652
257,535
Organization costs, net of
  accumulated amortization (Note B)                  -
-
Other assets                                   714,964
473,086
                                            ----------
----------
                                           $15,966,100
$17,368,744
                                            ==========
==========
LIABILITIES

Accounts payable and accrued
   expenses (Note C)                       $     1,146      $
1,145
Accounts payable affiliates                  2,993,107
2,360,745
Capital contributions payable (Note D)          32,922
32,922
                                            ----------
----------
                                             3,027,175
2,394,812
                                            ----------
----------
PARTNERS' CAPITAL

Limited Partners
  Units of limited partnership interest,
  $10 stated value per BAC; 22,000,000
  authorized BACs; 3,870,500 issued and
  outstanding, as of December 31, 1998      13,142,207
15,156,864
General Partner                               (203,282)
(182,932)
                                            ----------
----------
                                            12,938,925
14,973,932
                                            ----------
----------
                                           $15,966,100
$17,368,744
                                            ==========
==========

         The accompanying notes are an integral part of these
statements.
                                     2

                  Boston Capital Tax Credit Fund III L.P.

                                BALANCE SHEETS

                                                      SERIES 16

----------------------------
                                            December 31,
March 31,
                                                1998
1998
                                             (Unaudited)
(Audited)
ASSETS                                       -----------
---------

INVESTMENTS IN OPERATING
   PARTNERSHIPS (Note D)                     $28,223,602
$30,777,843

OTHER ASSETS
Cash and cash equivalents                        259,963
199,558
Investments                                      895,965
1,000,758
Notes receivable                                       -
-
Deferred acquisition costs
  net of accumulated amortization (Note B)       400,233
412,871
Organization costs, net of
  accumulated amortization (Note B)                    -
-
Other assets                                     125,431
72,210
                                              ----------
----------
                                             $29,905,194
$32,463,240
                                              ==========
==========
LIABILITIES

Accounts payable & accrued
   expenses (Note C)                         $         -     $
-
Accounts payable affiliates                    2,754,071
2,235,091
Capital contributions payable (Note D)           143,811
145,311
                                              ----------
----------
                                               2,897,882
2,380,402
                                              ----------
----------
PARTNERS' CAPITAL

Limited Partners
  Units of limited partnership interest,
  $10 stated value per BAC; 22,000,000
  authorized BACs; 5,429,402 issued and
  outstanding, as of December 31, 1998        27,203,847
30,248,618
General Partner                                 (196,535)
(165,780)
Unrealized gain (loss) on securities
  available for sale, net                              -
-
                                              ----------
----------
                                              27,007,312
30,082,838
                                              ----------
----------
                                             $29,905,194
$32,463,240
                                              ==========
==========

       The accompanying notes are an integral part of these
statements.
                                     3

                     Boston Capital Tax Credit Fund III L.P.

                                  BALANCE SHEETS

                                                       SERIES 17

----------------------------
                                            December 31,
March 31,
                                                1998
1998
                                             (Unaudited)
(Audited)
ASSETS                                       -----------
---------

INVESTMENTS IN OPERATING
   PARTNERSHIPS (Note D)                     $25,255,894
$27,762,778

OTHER ASSETS
Cash and cash equivalents                        402,948
388,024
Investments                                            -
-
Notes receivable                               1,332,152
1,409,982
Deferred acquisition costs
  net of accumulated amortization (Note B)       338,210
373,197
Organization costs, net of
  accumulated amortization (Note B)                    -
10,804
Other assets                                   1,314,763
1,121,814
                                              ----------
----------
                                             $28,643,967
$31,066,599
                                              ==========
==========
LIABILITIES

Accounts payable & accrued
   expenses (Note C)                         $   108,208     $
-
Accounts payable affiliates                    2,668,701
2,159,306
Capital contributions payable (Note D)         1,367,195
1,367,195
                                              ----------
----------
                                               4,144,104
3,526,501
                                              ----------
----------
PARTNERS' CAPITAL

Limited Partners
  Units of limited partnership interest,
  $10 stated value per BAC; 22,000,000
  authorized BACs; 5,000,000 issued and
  outstanding, as of December 31, 1998        24,684,543
27,694,376
General Partner                                 (184,680)
(154,278)
                                              ----------
----------
                                              24,499,863
27,540,098
                                              ----------
----------
                                             $28,643,967
$31,066,599
                                              ==========
==========

      The accompanying notes are an integral part of these
statements.
                                     4

                     Boston Capital Tax Credit Fund III L.P.

                                BALANCE SHEETS
                                                      SERIES 18

----------------------------
                                            December 31,
March 31,
                                                1998
1998
                                             (Unaudited)
(Audited)
ASSETS                                      ------------
----------

INVESTMENTS IN OPERATING
   PARTNERSHIPS (Note D)                     $19,865,282
$20,921,603

OTHER ASSETS
Cash and cash equivalents                        474,883
301,444
Investments                                      130,531
474,000
Notes receivable                                       -
536,351
Deferred acquisition costs,
  new of accumulated amortization (Note B)       272,009
280,569
Organization costs, net of
  accumulated amortization (Note B)                    -
18,772
Other assets                                      53,742
44,622
                                              ----------
----------
                                             $20,796,447
$22,577,361
                                              ==========
==========
LIABILITIES

Accounts payable & accrued
   expenses (Note C)                         $         -     $
-
Accounts payable affiliates                    1,334,502
1,048,041
Capital contributions payable (Note D)            18,554
717,635
                                              ----------
----------
                                               1,353,056
1,765,676
                                              ----------
----------
PARTNERS' CAPITAL

Limited Partners
  Units of limited partnership interest,
  $10 stated value per BAC; 22,000,000
  authorized BACs; 3,616,200 issued and
  outstanding, as of December 31, 1998        19,559,184
20,913,795
General Partner                                 (115,793)
(102,110)
                                              ----------
----------
                                              19,443,391
20,811,685
                                              ----------
----------
                                             $20,796,447
$22,577,361
                                              ==========
==========

      The accompanying notes are an integral part of these
statements.
                                     5

                 Boston Capital Tax Credit Fund III L.P.
 ,
                                BALANCE SHEETS

                                                      SERIES 19

----------------------------
                                      December 31,      March 31,
                                                1998
1998
                                             (Unaudited)
(Audited)
ASSETS                                      ------------
----------

INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D)                        $23,149,400
$25,323,640

OTHER ASSETS
Cash and cash equivalents                        675,984
607,779
Investments                                    1,266,939
1,371,109
Notes receivables                                      -
-
Deferred acquisition costs,
  net of accumulated amortization (Note B)       346,038
356,965
Organization costs, net of
  accumulated amortization (Note B)                9,573
37,782
Other assets                                      46,901
16,568
                                              ----------
----------
                                             $25,494,835
$27,713,843
                                              ==========
==========
LIABILITIES

Accounts payable & accrued
  expenses (Note C)                          $     3,408     $
3,408
Accounts payable affiliates                    1,208,740
900,229
Capital contributions payable (Note D)           463,000
463,000
                                              ----------
----------
                                               1,675,148
1,366,637
                                              ----------
----------
PARTNERS' CAPITAL

Limited Partners
  Units of limited partnership interest,
  $10 stated value per BAC; 22,000,000
  authorized BACs; 4,080,000 issued and
  outstanding, as of December 31, 1998        23,931,964
26,434,208
General Partner                                 (112,277)
(87,002)
                                              ----------
----------
                                              23,819,687
26,347,206
                                              ----------
----------
                                             $25,494,835
$27,713,843
                                              ==========
==========

     The accompanying notes are an integral part of these
statements.
                                     6

                  Boston Capital Tax Credit Fund III L.P.

                         STATEMENTS OF OPERATIONS

                     Three Months Ended September 30,
                              (Unaudited)



                                             1998         1997
                                             ----         ----

Income
  Interest income                       $    53,901   $    40,369
                                         ----------    ----------

Share of loss from Operating
  Partnerships (Note D)                  (2,889,612)
(3,619,421)
                                         ----------    ----------

Expenses
  Professional fees                          14,922         7,631
  Fund management fee (Note C)              587,164       612,837
  Amortization                               37,796        55,405
  General and administrative expenses        32,300        81,103
                                         ----------    ----------
                                            672,182       756,976
                                         ----------    ----------

  NET LOSS                              $(3,507,893)
$(4,336,028)
                                         ==========    ==========

Net loss allocated to limited
  partners                              $(3,472,814)
$(4,292,668)
                                         ==========    ==========

Net loss allocated general
  partner                               $   (35,079)  $
(43,360)
                                         ==========    ==========

Net loss per BAC                        $      (.76)  $
(.97)
                                         ==========    ==========




       The accompanying notes are an integral part of these
statements.
                                     7

                Boston Capital Tax Credit Fund III L.P.

                       STATEMENTS OF OPERATIONS

                    Three Months Ended December 31,
                            (Unaudited)

                                                      SERIES 15

-----------------------
                                                  1998
1997
                                                  ----
----
Income
  Interest income                              $ 171,668     $
168,032
                                                --------
--------

Share of loss from Operating
  Partnerships                                  (614,979)
(687,339)
                                                --------
--------

Expenses
  Professional fees                               10,966
1,293
  Fund management fee (Note C)                   121,266
132,377
  Amortization                                     2,628
2,628
  General and administrative expenses              5,483
14,934
                                                --------
--------
                                                 140,343
151,232
                                                --------
--------

  NET LOSS                                     $(583,654)
$(670,539)
                                                ========
========

Net loss allocated to limited
  partners                                     $(577,817)
$(663,834)
                                                ========
========

Net loss allocated to general
  partner                                      $  (5,837)    $
(6,705)
                                                ========
========

Net loss per BAC                               $    (.15)    $
(.17)
                                                ========
========




        The accompanying notes are an integral part of these
statements.
                                     8

            Boston Capital Tax Credit Fund III L.P.

                        STATEMENTS OF OPERATIONS

                     Three Months Ended December 31,
                              (Unaudited)


                                                     SERIES 16

------------------------
                                                  1998
1997
                                                  ----
----
Income
  Interest income                             $  (9,618)  $
(16,438)
                                               --------     -
--------

Share of loss from Operating
  Partnerships                                 (727,184)
(828,356)
                                               --------     -
--------

Expenses
  Professional fees                                 632
2,080
  Fund management fee (Note C)                  170,151
155,976
  Amortization                                    4,213
15,370
  General and administrative expenses             9,444
20,270
                                               --------     -
--------
                                                184,440
193,696
                                               --------     -
--------

  NET LOSS                                    $(921,242)
$(1,038,490)
                                               ========
==========

Net loss allocated to limited
  partners                                    $(912,030)
$(1,028,105)
                                               ========
==========

Net loss allocated to general
  partner                                     $  (9,212)  $
(10,385)
                                               ========
==========

Net loss per BAC                              $    (.16)  $
(.19)
                                               ========
==========




       The accompanying notes are an integral part of these
statements.
                                     9

            Boston Capital Tax Credit Fund III L.P.

                        STATEMENTS OF OPERATIONS

                     Three Months Ended December 31,
                             (Unaudited)


                                                     SERIES 17

------------------------
                                                 1998
1997
                                               ------
------
Income
  Interest income                           $   (50,809)    $
(50,304)
                                             ----------      --
--------

Share of loss from Operating
  Partnerships                                 (838,567)
(900,456)
                                             ----------      --
--------

Expenses
  Professional fees                               2,444
1,627
  Fund management fee (Note C)                  126,864
137,942
  Amortization                                   11,662
13,820
  General and administrative expenses             6,345
15,832
                                             ----------      --
--------
                                                147,315
169,221
                                             ----------      --
--------

  NET LOSS                                  $(1,036,691)
$(1,119,981)
                                             ==========
==========

Net loss allocated to limited
  partners                                  $(1,026,324)
$(1,108,781)
                                             ==========
==========

Net loss allocated to general
  partner                                   $   (10,367)    $
(11,200)
                                             ==========
==========

Net loss per BAC                            $      (.21)    $
(.22)
                                             ==========
==========




       The accompanying notes are an integral part of these
statements.
                                     10

                Boston Capital Tax Credit Fund III L.P.

                         STATEMENTS OF OPERATIONS

                      Three Months Ended December 31,
                              (Unaudited)


                                                     SERIES 18

----------------------
                                                 1998
1997
                                                 ----
----
Income
  Interest income                             $ (38,108)    $
(37,433)
                                               --------
--------

Share of loss from Operating
  Partnerships                                        -
(635,372)
                                               --------
--------

Expenses
  Professional fees                                 412
200
  Fund management fee (Note C)                   73,119
90,778
  Amortization                                    6,248
10,542
  General and administrative expenses             5,709
14,105
                                               --------
--------
                                                 85,488
115,625
                                               --------
--------

  NET LOSS                                    $(123,596)
$(788,430)
                                               ========
========

Net loss allocated to limited
  partners                                    $(122,360)
$(780,546)
                                               ========
========

Net loss allocated to general
  partner                                     $  (1,236)    $
(7,884)
                                               ========
========

Net loss per BAC                              $    (.03)    $
(.22)
                                               ========
========




       The accompanying notes are an integral part of these
statements.
                                      11

             Boston Capital Tax Credit Fund III L.P.

                     STATEMENTS OF OPERATIONS

                  Three Months Ended December 31,
                           (Unaudited)

                                                      SERIES 19

----------------------
                                                 1998
1997
                                                 ----
----
Income
  Interest income                             $ (19,232)    $
(23,488)
                                               --------
--------

Share of loss from Operating
  Partnerships                                 (708,882)
(567,898)
                                               --------
--------

Expenses
  Professional fees                                 468
2,431
  Fund management fee (Note C)                   95,764
95,764
  Amortization                                   13,045
13,045    General and administrative expenses               5,319
15,962
                                               --------
--------
                                                114,596
127,202
                                               --------
--------

  NET LOSS                                    $(842,710)
$(718,588)
                                               ========
========

Net loss allocated to limited
  partners                                    $(834,283)
$(711,402)
                                               ========
========

Net loss allocated to general
  partner                                     $  (8,427)    $
(7,186)
                                               ========
========

Net loss per BAC                              $    (.21)    $
(.17)
                                               ========
========





       The accompanying notes are an integral part of these
statements.
                                     12



                  Boston Capital Tax Credit Fund III L.P.

                         STATEMENTS OF OPERATIONS

                     Nine Months Ended December 31,
                              (Unaudited)



                                             1998         1997
                                             ----         ----

Income
  Interest income                      $    183,145  $    132,299
                                         ----------    ----------

Share of loss from Operating
  Partnerships (Note D)                 (10,020,693)
(10,105,640)
                                         ----------    ----------

Expenses
  Professional fees                         191,599       119,153
  Fund management fee (Note C)            1,761,133     1,678,185
  Amortization                              132,781       166,215
  General and administrative expenses       123,520       304,979
                                         ----------    ----------
                                          2,209,033     2,268,532
                                         ----------    ----------

  NET LOSS                             $(12,046,581)
$(12,241,873)
                                         ==========   ===========

Net loss allocated to limited
, , partners                           $(11,926,115)
$(12,119,454)
                                         ==========   ===========

Net loss allocated general
  partner                              $   (120,466) $
(122,419)
                                         ==========   ===========

Net loss per BAC                       $      (2,67) $
(2.77)
                                         ==========   ===========




       The accompanying notes are an integral part of these
statements.
                                    13

                Boston Capital Tax Credit Fund III L.P.

                       STATEMENTS OF OPERATIONS

                    Nine Months Ended December 31,
                            (Unaudited)

                                                      SERIES 15

-----------------------
                                                  1998
1997
                                                  ----
----
Income
  Interest income                            $   176,643   $
170,256
                                              ----------    --
--------

Share of loss from Operating
  Partnerships                                (1,753,429)
(2,098,823)
                                              ----------    --
--------

Expenses
  Professional fees                               57,272
51,002
  Fund management fee (Note C)                   369,967
368,360
  Amortization                                     7,884
7,884
  General and administrative expenses             23,098
37,970
                                              ----------    --
--------
                                                 458,221
465,216
                                              ----------    --
--------

  NET LOSS                                   $(2,035,007)
$(2,393,783)
                                              ==========
==========

Net loss allocated to limited
  partners                                   $(2,014,657)
$(2,369,845)
                                              ==========
==========

Net loss allocated to general
  partner                                    $   (20,350)  $
(23,938)
                                              ==========
==========

Net loss per BAC                             $      (.52)  $
(.61)
                                              ==========
==========




        The accompanying notes are an integral part of these
statements.
                                    14

                 Boston Capital Tax Credit Fund III L.P.

                        STATEMENTS OF OPERATIONS

                     Nine Months Ended December 31,
                              (Unaudited)


                                                     SERIES 16

------------------------
                                                  1998
1997
                                                  ----
----
Income
  Interest income                            $   36,435    $
8,109
                                              ---------     -
--------

Share of loss from Operating
  Partnerships                               (2,553,171)
(2,389,351)
                                             ----------    --
--------

Expenses
  Professional fees                              44,670
775
  Fund management fee (Note C)                  468,845
477,807
  Amortization                                   12,638
46,110
  General and administrative expenses            32,637
112,206
                                             ----------    --
--------
                                                558,790
636,898
                                             ----------    --
--------

  NET LOSS                                  $(3,075,526)
$(3,018,140)
                                             ==========
==========

Net loss allocated to limited
  partners                                  $(3,044,771)
$(2,987,959)
                                             ==========
==========

Net loss allocated to general
  partner                                   $   (30,755)  $
(30,181)
                                             ==========
==========

Net loss per BAC                            $      (.56)  $
(.55)
                                             ==========
==========




       The accompanying notes are an integral part of these
statements.
                                    15

            Boston Capital Tax Credit Fund III L.P.

                        STATEMENTS OF OPERATIONS

                     Nine Months Ended December 31,
                             (Unaudited)


                                                     SERIES 17

------------------------
                                                 1998
1997
                                                 ----
----
Income
  Interest income                           $   (47,254)    $
(42,551)
                                             ----------      --
--------

Share of loss from Operating
  Partnerships                               (2,499,080)
(2,143,853)
                                             ----------
----------

Expenses
  Professional fees                              38,153
36,593
  Fund management fee (Note C)                  383,373
394,766
  Amortization                                   45,791
41,459
  General and administrative expenses            26,584
43,180
                                             ----------
----------
                                                493,901
515,998
                                             ----------
----------

  NET LOSS                                  $(3,040,235)
$(2,702,402)
                                             ==========
==========

Net loss allocated to limited
  partners                                  $(3,009,833)
$(2,675,378)
                                             ==========
==========

Net loss allocated to general
  partner                                   $   (30,402)    $
(27,024)
                                             ==========
==========

Net loss per BAC                            $      (.60)    $
(.54)
                                             ==========
==========




       The accompanying notes are an integral part of these
statements.
                                     16

                Boston Capital Tax Credit Fund III L.P.

                         STATEMENTS OF OPERATIONS

                      Nine Months Ended December 31,
                              (Unaudited)


                                                     SERIES 18

----------------------
                                                 1998
1997
                                                 ----
----
Income
  Interest income                           $   (12,574)   $
(21,880)
                                             ----------    --
--------

Share of loss from Operating
  Partnerships                               (1,040,838)
(1,770,508)
                                             ----------    --
--------

Expenses
  Professional fees                              26,761
677
  Fund management fee (Note C)                  242,260
264,345
  Amortization                                   27,332
31,626
  General and administrative expenses            18,529
65,099
                                             ----------    --
--------
                                                314,882
361,747
                                             ----------    --
--------

  NET LOSS                                  $(1,368,294)
$(2,154,135)
                                             ==========
==========

Net loss allocated to limited
  partners                                  $(1,354,611)
$(2,132,594)
                                             ==========
==========

Net loss allocated to general
  partner                                   $   (13,683)  $
(21,541)
                                             ==========
==========

Net loss per BAC                            $      (.37)  $
(.59)
                                             ==========
==========




       The accompanying notes are an integral part of these
statements.
                                      17

             Boston Capital Tax Credit Fund III L.P.

                     STATEMENTS OF OPERATIONS

                  Nine Months Ended December 31,
                           (Unaudited)

                                                      SERIES 19

----------------------
                                                 1998
1997
                                                 ----
----
Income
  Interest income                           $    29,895   $
18,365
                                             ----------    --
--------

Share of loss from Operating
  Partnerships                               (2,174,175)
(1,703,105)
                                             ----------    --
--------

Expenses
  Professional fees                              24,743
30,106
  Fund management fee (Note C)                  296,688
172,907
  Amortization                                   39,136
39,136    General and administrative expenses              22,672
46,524
                                             ----------    --
--------
                                                383,239
288,673
                                             ----------    --
--------

  NET LOSS                                  $(2,527,519)
$(1,973,413)
                                             ==========
==========

Net loss allocated to limited
  partners                                  $(2,502,244)
$(1,953,679)
                                             ==========
==========

Net loss allocated to general
  partner                                   $   (25,275)  $
(19,734)
                                             ==========
==========

Net loss per BAC                            $      (.62)  $
(.48)
                                             ==========
==========





       The accompanying notes are an integral part of these
statements.
                                     18

                   Boston Capital Tax Credit Fund III L.P.

                  STATEMENT OF CHANGES IN PARTNERS' CAPITAL

                    Nine Months Ended December 31, 1998
                             (Unaudited)

                                                 Unrealized
                                               gain (loss) on
                                                 securities
                                                 available
                                     General         for
                      Assignees      Partner      sale, net
Total
                      ---------      -------      ---------
-----


Partners' capital
(deficit)
April 1, 1998       $120,447,861    $(692,102)   $        -
$119,755,759

Net change in
  unrealized gain
  (loss) on secur-
  ities available
  for sale                     -            -             -
-


Net income (loss)    (11,926,115)    (120,466)            -
(12,046,581)
                     -----------     --------     ---------
-----------

Partners' capital
 (deficit),
 December 31, 1998  $108,521,746    $(812,568)   $        -
$107,709,178
                     ===========     ========     =========
===========















       The accompanying notes are an integral part of these
statements.
                                     19

                   Boston Capital Tax Credit Fund III L.P.

                  STATEMENT OF CHANGES IN PARTNERS' CAPITAL

                     Nine Months Ended December 31, 1998
                                 (Unaudited)
                                                 Unrealized
                                               gain (loss) on
                                                 securities
                                                  available
                                    General          for
                     Assignees      Partner        sale,net
Total
                     ---------      -------        --------
-----
Series 15
---------
Partners' capital
 (deficit),
 April 1, 1998     $15,156,864    $ (182,932)    $          -
$14,973,932

Net change in
  unrealized gain
  (loss) on secur-
  ities available
  for sale                   -             -               -
-

Net income (loss)   (2,014,657)      (20,350)              -
(2,035,007)
                    ----------      --------      ----------
----------
Partners' capital
(deficit),
December 31, 1998  $13,142,207    $ (203,282)    $         -
$12,938,925
                    ==========      ========      ==========
==========

Series 16
---------
Partners' capital
(deficit),
 April 1, 1998     $30,248,618    $ (165,780)    $          -
$30,082,838

Net change in
  unrealized gain
  (loss) on secur-
  ities available
  for sale                   -             -               -
-

Net income (loss)   (3,044,771)      (30,755)              -
(3,075,526)
                    ----------      --------       ---------
----------
Partners' capital
(deficit),
December 31, 1998  $27,203,847    $ (196,535)    $         -
$27,007,312
                    ==========      ========       =========
==========

        The accompanying notes are an integral part of these
statements.
                                     20

                   Boston Capital Tax Credit Fund III L.P.

                  STATEMENT OF CHANGES IN PARTNERS' CAPITAL

                     Nine Months Ended December 31, 1998
                                 (Unaudited)
                                                 Unrealized
                                               gain (loss) on
                                                 securities
                                                  available
                                    General          for
                     Assignees      Partner        sale,net
Total
                     ---------      -------        --------
-----
Series 17
---------
Partners' capital
 (deficit),
 April 1, 1998     $27,694,376     $(154,278)     $        -
$27,540,098

Net change in
  unrealized gain
  (loss) on secur-
  ities available
  for sale                   -             -               -
-

Net income (loss)   (3,009,833)      (30,402)              -
(3,040,235)
                    ----------      --------       ---------
----------
Partners' capital
(deficit),
December 31, 1998  $24,684,543     $(184,680)     $        -
$24,499,863
                    ==========      ========       =========
==========
Series 18
---------
Partners' capital
(deficit),
 April 1, 1998     $20,913,795     $(102,110)     $        -
$20,811,685

Net change in
  unrealized gain
  (loss) on secur-
  ities available
  for sale                   -             -               -
-

Net income (loss)   (1,354,611)      (13,683)              -
(1,368,294)
                    ----------       -------       ---------
----------
Partners' capital
(deficit),
December 31, 1998  $19,559,184     $(115,793)     $        -
$19,443,391
                    ==========       =======       =========
==========


       The accompanying notes are an integral part of these
statements.
                                     21

                   Boston Capital Tax Credit Fund III L.P.

                  STATEMENT OF CHANGES IN PARTNERS' CAPITAL

                      Nine Months Ended December 31, 1998
                                 (Unaudited)



                                                 Unrealized
                                               gain (loss) on
                                                 securities
                                                  available
                                    General          for
                     Assignees      Partner        sale,net
Total
                     ---------      -------        --------
-----


Series 19
---------

Partners' capital
 (deficit),
 April 1, 1998     $26,434,208     $ (87,002)    $         -
$26,347,206

Net change in
  unrealized gain
  (loss) on secur-
  ities available
  for sale                   -             -               -
-

Net income (loss)   (2,502,244)      (25,275)              -
(2,527,519)
                    ----------      --------      ----------
----------
Partners' capital
(deficit),
December 31, 1998  $23,931,964     $(112,277)    $         -
$(23,819,687)
                    ==========      ========      ==========
==========












    The accompanying notes are an integral part of these
statements.

                                     22

                   Boston Capital Tax Credit Fund III L.P.

                         STATEMENTS OF CASH FLOWS

                     Nine Months Ended December 31,
                                (Unaudited)



                                             1998
1997
                                             ----
----
Cash flows from operating activities:

    Net loss                             $(12,046,581)
$(12,241,874)
    Adjustments
       Distributions from Operating
         Partnerships                          17,273
-
       Amortization                            97,794
166,215
       Share of loss from Operating
         Partnerships               10,020,693     10,105,640
    Changes in assets and liabilities
       (Decrease) Increase in accounts
         payable and accrued expenses         108,208
(128)
       Decrease (Increase) in accounts
         receivable                          (527,502)
173,329
       Decrease (Increase) in accounts
         payable affiliates                 2,255,716
1,949,005
                                           ----------
----------
         Net cash (used in) provided by
           operating activities               (74,399)
152,187
                                           ----------
----------

Cash flows from investing activities:

     Acquisition costs repaid (paid) for
       Operating Partnerships acquired or
       to acquire                              34,987
-
     Capital contributions paid to
       Operating Partnerships                (692,564)
(507,083)
     Advances to Operating Partnerships       692,011
-
     Investments                              549,404
10,511
                                           ----------     -
---------
         Net cash (used in) provided by
           investing activities               583,838
(496,572)
                                           ----------
----------






                                     23

                  Boston Capital Tax Credit Fund III L.P.

                         STATEMENTS OF CASH FLOWS

                      Nine Months Ended December 31,
                                (Unaudited)



                                               1998
1997
                                               ----
----

Continued
---------

Cash flows from financing activity:

     Credit adjusters received from
       Operating Partnerships                       -
-
                                           ----------
----------
         Net cash (used in) provided by
          financing activity                        -
-
                                           ----------
----------


         INCREASE (DECREASE) IN CASH AND
           CASH EQUIVALENTS                   509,439
(344,385)
                                           ----------
----------

Cash and cash equivalents, beginning        1,653,522
3,925,707
                                           ----------
----------

Cash and cash equivalents, ending         $ 2,162,961    $
3,581,322
                                           ==========
==========


Supplemental schedule of noncash
  investing and financing activates:
     The fund has increased its investments
     for unpaid capital contributions due to
     the Operating Partnerships           $         -    $
-
                                           ==========
==========








       The accompanying notes are an integral part of these
statements.
                                     24

                    Boston Capital Tax Credit Fund III L.P.

                           STATEMENTS OF CASH FLOWS

                        Nine Months Ended December 31,
                                 (Unaudited)

                                                    Series 15

-------------------------
                                                1998
1997
                                                ----
----
Cash flows from operating activities:

   Net loss                                $(2,035,007)
$(2,393,783)
    Adjustments
       Distributions from Operating
         Partnerships                              874
3,017
       Amortization                              7,884
7,884
       Share of loss from Operating
         Partnerships                        1,753,429
2,098,823
    Changes in assets and liabilities
       (Decrease) increase in accounts
         payable and accrued expenses                -
2
       Decrease (Increase) in accounts
         receivable                           (241,878)
-
       Decrease (Increase) in accounts
         payable affiliates                    632,362
411,038
                                              --------     -
--------
         Net cash (used in) provided by
           operating activities                117,664
126,981
                                              --------     -
--------
Cash flows from investing activities:

     Acquisition costs repaid (paid) for
       Operating Partnerships acquired or
       to acquire                                    -
-
     Capital contributions paid to Operating
       Partnerships                                  -
(145,068)
     Advances to Operating Partnerships         77,830
25,000
     Investments                                (3,028)
-
                                              --------     -
--------
         Net cash (used in) provided by
           investing activities                 74,802
(120,068)
                                              --------     -
--------







                                     25

                 Boston Capital Tax Credit Fund III L.P.

                         STATEMENTS OF CASH FLOWS

                      Nine Months Ended December 31,
                                (Unaudited)



                                                     Series 15

----------------------
                                                1998
1997
                                                ----
----
Continued
---------

Cash flows from financing activity:

     Credit adjusters received from
       Operating Partnerships                        -
-
                                              --------
--------
         Net cash (used in) provided by
           financing activity                        -
-
                                              --------
--------

         INCREASE (DECREASE) IN CASH
           AND CASH EQUIVALENTS                192,466
6,913


Cash and cash equivalents, beginning           156,717
246,845
                                              --------
--------

Cash and cash equivalents, ending            $ 349,183     $
253,758
                                              ========
========

Supplemental schedule of noncash investing
  and financing activities
     The Fund has increased its investments
     for unpaid capital contributions due to
     the Operating Partnerships              $       -    $
-
                                              ========
=========









     The accompanying notes are an integral part of these
statements.
                                     26

                  Boston Capital Tax Credit Fund III L.P.

                           STATEMENTS OF CASH FLOWS

                        Nine Months Ended December 31,
                                 (Unaudited)

                                                    Series 16

-------------------------
                                                1998
1997
                                                ----
----
Cash flows from operating activities:

    Net loss                               $(3,075,526)
$(3,018,140)
    Adjustments
       Distributions from Operating
         Partnerships                            1,064
3,098
       Amortization                             12,638
46,110
       Share of loss from Operating
         Partnerships                        2,553,171
2,389,351
    Changes in assets and liabilities
       (Decrease) increase in accounts
         payable and accrued expenses                -
-
       Decrease (Increase) in accounts
         receivable                            (53,221)
(28,189)
       Decrease (Increase) in accounts
         payable affiliates                    518,986
518,985
                                            ----------
----------
         Net cash (used in) provided by
           operating activities                (42,888)
(88,785)
                                            ----------
----------
Cash flows from investing activities:

     Acquisition costs repaid (paid) for
       Operating Partnerships acquired or
       to acquire                                    -
-
     Capital contributions paid to Operating
       Partnerships                             (1,500)
-
     Advances to Operating Partnerships              -
(9,914)
     Investments                               104,793
3,052
                                            ----------
----------
         Net cash (used in) provided by
           investing activities                103,293
(6,862)
                                            ----------
----------







                                     27

                   Boston Capital Tax Credit Fund III L.P.

                         STATEMENTS OF CASH FLOWS

                      Nine Months Ended December 31,
                                (Unaudited)




                                                     Series 16

-----------------------
                                                1998         1997
                                                ----
-----
Continued
---------

Cash flows from financing activity:

       Credit adjusters received from
         Operating Partnerships                      -
-
                                            ----------
----------
         Net cash (used in) provided by
           financing activity                        -
-
                                            ----------
----------

         INCREASE (DECREASE) IN CASH
           AND CASH EQUIVALENTS                 60,405
(95,647)


Cash and cash equivalents, beginning           199,558
1,183,424
                                            ----------
----------

Cash and cash equivalents, ending          $   259,963   $
1,087,777
                                            ==========
==========

Supplemental schedule of noncash investing
  and financing activities:
     The Fund has increased its investments
     for unpaid capital contributions due to
     the Operating Partnerships            $         -   $
-
                                            ==========
==========








     The accompanying notes are an integral part of these
statements.
                                     28

                  Boston Capital Tax Credit Fund III L.P.

                           STATEMENTS OF CASH FLOWS

                        Nine Months Ended December 31,
                                 (Unaudited)

                                                    Series 17

-------------------------
                                                1998
1997
                                                ----
----
Cash flows from operating activities:

    Net loss                               $(3,040,235)
$(2,702,402)
    Adjustments
       Distributions from Operating
         Partnerships                            7,804
9,087
       Amortization                             10,804
41,459
       Share of loss from Operating
         Partnerships                        2,499,080
2,143,853
    Changes in assets and liabilities
       (Decrease) increase in accounts
         payable and accrued expenses          108,208
-
       Decrease (Increase) in accounts
         receivable                           (192,949)
206,079
       Decrease (Increase) in accounts
         payable affiliates                    509,395
424,031
                                            ----------
----------
         Net cash (used in) provided by
           operating activities                (97,893)
122,107
                                            ----------
----------
Cash flows from investing activities:

     Acquisition costs repaid (paid) for
       Operating Partnerships acquired or
       to acquire                               34,987
-
     Capital contributions paid to Operating
       Partnerships                                  -
(213,893)
     Advances to Operating Partnerships         77,830
-
     Investments                                     -
-
                                            ----------
----------
         Net cash (used in) provided by
           investing activates                 112,817
(213,893)
                                            ----------
----------







                                     29

                 Boston Capital Tax Credit Fund III L.P.

                         STATEMENTS OF CASH FLOWS

                      Nine Months Ended December 31,
                                (Unaudited)



                                                    Series 17

------------------------
                                               1998          1997
                                               ----          ----
Continued
---------

Cash flows from financing activity:

     Credit adjusters received from
       Operating Partnerships                        -
-
                                            ----------
----------
         Net cash (used in) provided by
           financing activity                        -
-
                                            ----------
----------

         INCREASE (DECREASE) IN CASH
           AND CASH EQUIVALENTS                 14,924
(91,786)


Cash and cash equivalents, beginning           388,024
539,185
                                            ----------
----------

Cash and cash equivalents, ending          $   402,948   $
447,399
                                            ==========
==========

Supplemental schedule of noncash investing
  and financing activities:
     The Fund has increased its investments
     for unpaid capital contributions due to
     the Operating Partnerships            $         -  $
-
                                            ==========
==========









     The accompanying notes are an integral part of these
statements.
                                     30

                  Boston Capital Tax Credit Fund III L.P.

                           STATEMENTS OF CASH FLOWS

                         Nine Months Ended December 31,
                                 (Unaudited)

                                                    Series 18

-------------------------
                                                1998
1997
                                                ----
----
Cash flows from operating activities:

    Net loss                               $(1,368,294)
$(2,154,135)
    Adjustments
       Distributions from Operating
         Partnerships                            7,466
2,469
       Amortization                             27,332
31,626
       Share of loss from Operating
         Partnerships                        1,040,838
1,770,508
    Changes in assets and liabilities
      (Decrease) increase in accounts
         payable and accrued expenses                -
(129)
       Decrease (Increase) in accounts
         receivable                             (9,121)
1,191
       Decrease (Increase) in accounts
         payable affiliates                    286,462
286,440
                                            ----------
----------
         Net cash (used in) provided by
           operating activities                (15,317)
(62,030)
                                            ----------
----------
Cash flows from investing activities:

     Acquisition costs repaid (paid) for
       Operating Partnerships acquired or
       to acquire                                    -
-
     Capital contributions paid to Operating
       Partnerships                           (691,064)
(38,321)
     Advances to Operating Partnerships        536,351)
-
     Investments                               343,469
1,838
                                            ----------
----------
         Net cash (used in) provided by
           investing activities                188,756
(36,483)
                                            ----------
----------







                                     31

                 Boston Capital Tax Credit Fund III L.P.

                         STATEMENTS OF CASH FLOWS

                      Nine Months Ended December 31,
                                (Unaudited)



                                                      Series 18

-----------------------
                                                1998         1997
                                                ----         ----
Continued
---------

Cash flows from financing activity:

     Credit adjusters received from
       Operating Partnerships                        -
-
                                             ---------
----------
         Net cash (used in) provided by
           financing activity                        -
-
                                             ---------
----------

         INCREASE (DECREASE) IN CASH
           AND CASH EQUIVALENTS                173,439
(98,513)


Cash and cash equivalents, beginning           301,444
766,409
                                             ---------
----------

Cash and cash equivalents, ending           $  474,883   $
667,896
                                             =========
==========

Supplemental schedule of noncash investing
  and financing activities:
     The Fund has increased its investments
     for unpaid capital contributions due to
     the Operating Partnerships             $        -   $
-
                                             =========
==========









     The accompanying notes are an integral part of these
statements.
                                     32

                  Boston Capital Tax Credit Fund III L.P.

                           STATEMENTS OF CASH FLOWS

                        Nine Months Ended December 31,
                                 (Unaudited)

                                                    Series 19

-------------------------
                                                1998
1997
                                                ----
----
Cash flows from operating activities:

    Net loss                               $(2,527,519)
$(1,973,413)
    Adjustments
       Distributions from Operating
         Partnerships                               65
5,065
       Amortization                             39,136
39,136
       Share of loss from Operating
         Partnerships                        2,174,175
1,703,105
    Changes in assets and liabilities
       (Decrease) increase in accounts
         payable and accrued expenses                -
(1)
       Decrease (Increase) in accounts
         Receivable/ other assets              (30,333)
(5,752)
       Decrease (Increase) in accounts
         payable affiliates                    308,511
308,511
                                            ----------
----------
         Net cash (used in) provided by
           operating activities                (35,965)
76,651
                                            ----------
----------
Cash flows from investing activities:

     Acquisition costs repaid (paid) for
     Operating Partnerships acquired or
       to acquire                                    -
-
     Capital contributions paid to Operating
       Partnerships                                  -
(147,623)
     Advances to Operating Partnerships              -
-
     Investments                               104,170
5,621
                                            ----------
----------
         Net cash (used in) provided by
           investing activities                104,170
(142,002)
                                            ----------    -
---------







                                     33

                 Boston Capital Tax Credit Fund III L.P.

                         STATEMENTS OF CASH FLOWS

                       Nine Months Ended December 31,
                                (Unaudited)




                                                   Series 19

------------------------
                                              1998          1997
                                              ----          ----

Continued
---------

Cash flows from financing activity:

     Credit adjusters received from
       Operating Partnerships                        -
-
                                            ----------
----------
         Net cash (used in) provided by
           financing activity                        -
-
                                            ----------
----------

         INCREASE (DECREASE) IN CASH
           AND CASH EQUIVALENTS                 68,205
(65,351)


Cash and cash equivalents, beginning           607,779
1,189,843
                                            ----------
----------

Cash and cash equivalents, ending          $   675,984   $
1,124,492
                                            ==========
==========

Supplemental schedule of noncash investing
  and financing activities:
     The Fund has increased its investments
     for unpaid capital contributions due to
     the Operating Partnerships            $         -   $
-
                                            ==========
==========






     The accompanying notes are an integral part of these
statements.
                                     34

                  Boston Capital Tax Credit Fund III L.P.

                       NOTES TO FINANCIAL STATEMENTS
                             December 31, 1998
                                (Unaudited)


NOTE A - ORGANIZATION

     Boston Capital Tax Credit Fund III L.P. (the "Fund") was
formed under the laws of the State of Delaware as of September
19, 1991 for the purpose of
acquiring, holding, and disposing of limited partnership
interests in
Operating Partnerships which will acquire, develop, rehabilitate,
operate and
own newly constructed, existing or rehabilitated low-income
apartment
complexes ("Operating Partnerships"). The general partner of the
Fund is
Boston Capital Associates III L.P., a Delaware limited
partnership.  Boston
Capital Associates, a Massachusetts general partnership, whose
only two
partners are Herbert F. Collins and John P. Manning, the
principals of Boston
Capital Partners, Inc., is the sole general partner of the
general partner.
The limited partner of the general partner is Capital Investment
Holdings, a
general partnership whose partners are certain officers and
employees of
Boston Capital Partners, Inc., and its affiliates.  The Assignor
Limited
Partner is BCTC III Assignor Corp., a Delaware corporation which
is
wholly-owned by Herbert F. Collins and John P. Manning.

     Pursuant to the Securities Act of 1933, the Fund filed a
Form S-11
Registration Statement with the Securities and Exchange
Commission, effective
January 24, 1992 which covered the offering (the "Public
Offering") of the
Fund's beneficial assignee certificates ("BACs") representing
assignments of
units of the beneficial interest of the limited partnership
interest of the
Assignor Limited Partner.  The Fund registered 20,000,000 BACs at
$10 per BAC
for sale to the public in one or more series.  On September 4,
1993 the Fund
filed an amendment to Form S-11 with the Securities and Exchange
Commission
which registered an additional 2,000,000 BACs at $10 per BAC for
sale to the
public in one or more series.  The registration for the
additional BACs became
effective on October 6, 1993.  Offers and sales of BACs in Series
15 through
19 of the Fund were completed and the last of the BACs in Series
15, 16, 17,
18 and 19 were issued by the Fund on June 26, 1992, December 28,
1992, June
17, 1993, September 22, 1993, and December 17, 1993,
respectively.  The Fund
sold 3,870,500 of Series 15 BACs, for a total of $38,705,000;
5,429,402 of
Series 16 BACs, for a total of $54,293,000; 5,000,000 of Series
17 BACs, for a
total of $50,000,000; 3,616,200 of Series 18 BACs, for a total of
$36,162,000;
and 4,080,000 of Series 19 BACs, for a total of $40,800,000.  The
Fund issued
the last BACs in Series 19 on December 17, 1993.  This concluded
the Public
Offering of the Fund.






                                     35

                 Boston Capital Tax Credit Fund III L.P.

                 NOTES TO FINANCIAL STATEMENTS - CONTINUED
                             December 31, 1998
                                (Unaudited)

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES

     The condensed financial statements included herein as of
December 31, 1998 and for the three and nine months then ended
have been prepared by the Fund, without audit.  The Fund accounts
for its investments in Operating Partnerships using the equity
method, whereby the Fund adjusts its investment cost for its
share of each Operating Partnership's results of operations and
for any distributions received or accrued.  Costs incurred by the
Fund in acquiring the investments in the Operating Partnerships
are capitalized to the
investment account.  The Fund's accounting and financial
reporting policies
are in conformity with generally accepted accounting principles
and include
adjustments in  interim periods considered necessary for a fair
presentation
of the results of operations.  Such adjustments are of a normal
recurring
nature.

Investment Securities
---------------------
     The Fund has determined that all of it's investment
securities are to be
categorized as securities available for sale.  Securities
classified as
available for sale are those debt securities that the Fund
purchased that may
be liquidated prior to the maturity date should the need arise.
These
securities are carried at approximate fair market value.

     The amortized cost of securities available for sale as of
December 31, 1998 by contractual maturity are as follows:

                                 Amortized
                                    Cost
                                -----------
  Due in one year or less       $2,421,463

  Due after one year                     -
                                 ---------
  Total                         $2,421,463
                                 =========

The fair market value of the securities is $2,421,463.







                                     36

                  Boston Capital Tax Credit Fund III L.P.

                 NOTES TO FINANCIAL STATEMENTS - CONTINUED
                             December 31, 1998
                                (Unaudited)

NOTE - B ACCOUNTING AND FINANCIAL REPORTING POLICIES - CONTINUED

     Amortized cost is the face value of the securities and any
unamortized premium or discount.  The balance sheet reflects the
fair market value under
investments.

Amortization
------------
     The Fund amortizes organizational costs over 60 months.  As
of December 31, 1998 and 1997 the Fund has accumulated
organization amortization totaling
$924,855 and $826,967 respectively.  The breakdown of accumulated
organization
amortization within the Fund as of December 31, 1998 and 1997 is
as follows:

                               1998           1997
                               ----           ----
              Series 15      $167,077       $167,077
              Series 16       227,909        216,752
              Series 17       205,888        186,881
              Series 18       150,296        123,835
              Series 19       173,685        132,422
                              -------        -------
                             $924,855       $826,967
                              =======        =======

     On July 1, 1995, the Fund began amortizing unallocated
acquisition costs over 330 months from April 1, 1995. As of
December 31, 1998 the Fund has
accumulated unallocated acquisition amortization totaling
$262,197.  The
breakdown of accumulated unallocated acquisition amortization
within the fund
as of December 31, 1998 for Series 15, Series 16, Series 17,
Series 18, and
Series 19 is $39,518, $63,195, $42,930, $89,540 and $52,011,
respectively.

NOTE C - RELATED PARTY TRANSACTIONS

     The Fund has entered into several transactions with various
affiliates of the general partner, including Boston Capital
Partners, Inc., and Boston Capital Asset Management Limited
Partnership (formerly Boston Capital Communications Limited
Partnership) as follows:

     Boston Capital Partners, Inc. is entitled to asset
acquisition fees for
selecting, evaluating, structuring, negotiating, and closing the
Fund's
acquisition of interests in the Operating Partnerships.   Prior
to the quarter
ended December 31, 1998 all series had completed payment of all
acquisition
fees due to Boston Capital Partners, Inc.



                                     37

                  Boston Capital Tax Credit Fund III L.P.

                 NOTES TO FINANCIAL STATEMENTS - CONTINUED
                             December 31, 1998
                                (Unaudited)

NOTE C - RELATED PARTY TRANSACTIONS - CONTINUED

     An annual fund management fee based on .5 percent of the
aggregate cost of all apartment complexes owned by the Operating
Partnerships, has been accrued to Boston Capital Asset Management
Limited Partnership (formerly Boston Capital Communications
Limited Partnership).  The fund management fees accrued for the
quarter ended December 31, 1998 and 1997 are as follows:

                               1998            1997
                               ----            ----
              Series 15      $137,013       $137,013
              Series 16       172,995        172,995
              Series 17       141,342        141,347
              Series 18        95,487         95,487
              Series 19       102,837        102,837
                              -------        -------
                             $649,674       $649,679
                              =======        =======

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS

     At December 31, 1998 and 1997, the Fund had limited
partnership interests in 241 Operating Partnerships which own or
are constructing apartment complexes.  The breakdown of Operating
Partnerships within the Fund at December 31, 1998 and 1997 is as
follows:



                Series 15             68
                Series 16             64
                Series 17             49
                Series 18             34
                Series 19             26
                                     ---
                                     241
                                     ===









                                     38

                  Boston Capital Tax Credit Fund III L.P.

                 NOTES TO FINANCIAL STATEMENTS - CONTINUED
                            December 31, 1998
                                (Unaudited)


NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS - CONTINUED

     Under the terms of the Fund's investment in each Operating
Partnership, the Fund is required to make capital contributions
to the Operating Partnerships.  These contributions are payable
in installments over several years upon each Operating
Partnership achieving specified levels of construction and/or
operations.  The contributions payable at December 31, 1998 and
1997 are as follows:

                                 1998           1997
                                 ----           ----
              Series 15       $   32,922    $    34,528
              Series 16          143,811        145,311
              Series 17        1,367,195      1,619,079
              Series 18           18,554        717,634
              Series 19          463,000        684,180
                               ---------     ----------
                              $2,025,482    $ 3,200,732
                               =========     ==========

     The Fund's fiscal year ends March 31st of each year, while
all the Operating Partnerships' fiscal years are the calendar
year.  Pursuant to the provisions of each Operating Partnership
Agreement, financial results for each of the Operating
Partnerships are provided to the Fund within 45 days after the
close of each Operating Partnership's quarterly period.
Accordingly, the current financial results available for the
Operating Partnerships are for the nine months ended September
30, 1998.

















                                     39

                 Boston Capital Tax Credit Fund III L.P.

                 NOTES TO FINANCIAL STATEMENTS - CONTINUED
                          December 31, 1998
                              (Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

               COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
                       Nine months ended September 30,
                             (Unaudited)

                                                 Series 15

---------------------------
                                          1998             1997
                                          ----             ----
Revenues
   Rental                             $ 7,129,846      $
7,057,435
   Interest and other                     360,905
354,959
                                        ---------
---------
                                        7,490,751
7,412,394
                                        ---------
---------
Expenses
  Interest                              2,125,796
2,304,960
  Depreciation and amortization         2,815,661
3,008,366
  Operating expenses                    4,562,959
4,342,971
                                        ---------
---------
                                        9,504,416
9,656,297
                                        ---------
---------

          NET LOSS                    $(2,013,665)
$(2,243,903)
                                        =========
=========
Net loss allocated to Boston
  Capital Tax Credit Fund
  III L.P.                            $(1,753,429)
$(2,098,823)
                                        =========
=========

Net loss allocated to other
  partners                            $   (20,137)     $
(22,439)
                                        =========
=========

Net loss suspended                    $  (240,099)     $
(122,641)
                                        =========
=========

The Fund accounts for its investments using the equity method of
accounting.
Under the equity method of accounting, the partnership adjusts
its investment
cost for its share of each Operating Partnership's results of
operations and
for any distributions received or accrued.  However, the
Partnership
recognizes individual operating losses only to the extent of
capital
contributions.  Excess losses are suspended for use in future
years to offset
excess income.
                                     40

                 Boston Capital Tax Credit Fund III L.P.

                 NOTES TO FINANCIAL STATEMENTS - CONTINUED
                          December 31, 1998
                              (Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

               COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
                      Nine months ended September 30,
                              (Unaudited)

                                                Series 16

--------------------------
                                           1998             1997
                                           ----             ----
 Revenues
   Rental                             $ 9,194,077      $
9,194,168
   Interest and other                     713,264
690,191
                                       ----------
----------
                                        9,907,341
9,884,359
                                       ----------
----------
Expenses
  Interest                              3,153,195
3,141,090
  Depreciation and amortization         3,396,748
3,448,529
  Operating expenses                    5,982,373
5,708,225
                                       ----------
----------
                                       12,532,316
12,297,844
                                       ----------
----------

          NET LOSS                    $(2,624,975)
$(2,413,485)
                                       ==========
==========

Net loss allocated to Boston
  Capital Tax Credit Fund
  III L.P.                            $(2,553,171)
$(2,389,351)
                                       ==========
==========

Net loss allocated to other
  partners                            $   (26,250)     $
(24,134)
                                       ==========
==========

Net loss suspended                    $   (45,554)     $
-
                                       ==========
==========

The Fund accounts for its investments using the equity method of
accounting.
Under the equity method of accounting, the partnership adjusts
its investment
cost for its share of each Operating Partnership's results of
operations and
for any distributions received or accrued.  However, the
Partnership
recognizes individual operating losses only to the extent of
capital
contributions.  Excess losses are suspended for use in future
years to offset
excess income.
                               41

                 Boston Capital Tax Credit Fund III L.P.

                  NOTES TO FINANCIAL STATEMENTS - CONTINUED
                              December 31, 1998
                               (Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

               COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
                        Nine Months ended September 30,
                             (Unaudited)

                                                  Series 17

--------------------------
                                          1998             1997
 Revenues                                 ----             ----

   Rental                             $ 8,198,413      $
8,838,373
   Interest and other                     423,235
408,674
                                       ----------
---------
                                        8,621,648
9,247,047
                                       ----------
---------
Expenses
  Interest                              3,046,408
3,440,939
  Depreciation and amortization         3,203,030
2,978,359
  Operating expenses                    4,896,534
4,993,255
                                       ----------
---------
                                       11,145,972
11,412,553
                                       ----------
---------

          NET LOSS                    $(2,524,324)
$(2,165,506)
                                       ==========
=========

Net loss allocated to Boston
  Capital Tax Credit Fund
  III L.P.                            $(2,499,080)
$(2,143,853)
                                       ==========
=========

Net loss allocated to other
  partners                            $   (25,244)     $
(21,653)
                                       ==========
=========


The Fund accounts for its investments using the equity method of
accounting.
Under the equity method of accounting, the partnership adjusts
its investment
cost for its share of each Operating Partnership's results of
operations and
for any distributions received or accrued.  However, the
Partnership
recognizes individual operating losses only to the extent of
capital
contributions.  Excess losses are suspended for use in future
years to offset
excess income.


                               42

                Boston Capital Tax Credit Fund III L.P.

                NOTES TO FINANCIAL STATEMENTS - CONTINUED
                    December 31, 1998
                            (Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

             COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
                    Nine months ended September 30,
                          (Unaudited)

                                                  Series 18

----------------------------
                                          1998             1997
 Revenues                                 ----             ----
   Rental                             $ 4,598,802
$4,534,379
   Interest and other                     175,593
215,890
                                        ---------
---------
                                        4,774,395
4,750,269
                                        ---------
---------
Expenses
  Interest                              1,661,453
1,683,869
  Depreciation and amortization         2,058,573
2,123,294
  Operating expenses                    2,679,420
2,731,498
                                        ---------
---------

                                        6,399,446
6,538,661
                                        ---------
---------

          NET LOSS                    $(1,625,051)
$(1,788,392)
                                        =========
=========
Net loss allocated to Boston
  Capital Tax Credit Fund
  III L.P.                            $(1,563,941)
$(1,770,508)
                                        =========
=========

Net loss allocated to other
  partners                            $   (16,251)      $
(17,884)
                                        =========
=========

Net loss suspended                    $   (44,859)      $
-
                                        =========
=========

The Fund accounts for its investments using the equity method of
accounting.
Under the equity method of accounting, the partnership adjusts
its investment
cost for its share of each Operating Partnership's results of
operations and
for any distributions received or accrued.  However, the
Partnership
recognizes individual operating losses only to the extent of
capital
contributions.  Excess losses are suspended for use in future
years to offset
excess income.

                                     43
                 Boston Capital Tax Credit Fund III L.P.

                 NOTES TO FINANCIAL STATEMENTS - CONTINUED
                          December 31, 1998
                              (Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

               COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
                      Nine months ended September 30,
                             (Unaudited)

                                                  Series 19

--------------------------
                                           1998             1997
 Revenues                                  ----             ----
   Rental                             $ 6,674,217      $
6,450,265
   Interest and other                     235,939
223,451
                                        ---------
---------

                                        6,910,156
6,673,716
                                        ---------
---------
Expenses
  Interest                              2,632,402
2,702,277
  Depreciation and amortization         2,937,007
2,208,069
  Operating expenses                    3,536,883
3,483,678
                                        ---------
---------

                                        9,106,292
8,394,024
                                        ---------
---------

          NET LOSS                    $(2,196,137)
$(1,720,308)
                                        =========
=========
Net loss allocated to Boston
  Capital Tax Credit Fund
  III L.P.                            $(2,174,175)
$(1,703,105)
                                        =========
=========

Net loss allocated to other
  partners                            $   (21,962)     $
(17,203)
                                        =========
=========

The Fund accounts for its investments using the equity method of
accounting.
Under the equity method of accounting, the partnership adjusts
its investment
cost for its share of each Operating Partnership's results of
operations and
for any distributions received or accrued.  However, the
Partnership
recognizes individual operating losses only to the extent of
capital
contributions.  Excess losses are suspended for use in future
years to offset
excess income.
                                     44

                         Boston Capital Tax Credit Fund III L.P.

                        NOTES TO FINANCIAL STATEMENTS - CONTINUED
                                 December 31, 1998
                                       (Unaudited)

NOTE D - INVESTMENT IN OPERATING PARTNERSHIPS-CONTINUED


     When comparing the results of operations from the operating
partnerships for the nine months ended September 30, 1998 and
September 30, 1997 for Series 17 and 19, variances, some material
in nature, exist.  The variances are the result of a number of
factors including an increase in the number of Operating
Partnerships which have completed construction, and an increase
in the number
which have completed the lease-up phase.  Smaller variances are
anticipated in
future years since the Fund has finished acquiring Operating
Partnerships,
construction is complete on all of the Operating Partnerships and
most have
completed the lease-up phase.


NOTE E - TAXABLE LOSS

     The Fund's taxable loss for the year ended December 31, 1998
is expected to differ from its loss for financial reporting
purposes for the year end March 31, 1999.  This is primarily due
to accounting differences in depreciation incurred by the
Operating Partnerships and also differences between the equity
method of accounting and the IRS accounting methods.  No
provision or benefit for income taxes has been included in these
financial statements since taxable income or loss passes through
to, and is reportable by, the partners and assignees
individually.





















                                     45

Item 2.  Management's Discussions and Analysis of Financial
Condition and
Results of Operations

Liquidity
---------
     The Fund's primary source of funds is the proceeds of its
Public Offering.  Other sources of liquidity will include (i)
interest earned on capital contributions held pending investment
and on Working Capital Reserves and (ii) cash distributions from
operations of the operating Partnerships in which the Fund has
and will invest.  Interest income is expected to decrease over
the life of the Fund as capital contributions are paid to the
Operating
Partnerships and Working Capital Reserves are expended.    The
Fund does not
anticipate significant cash distributions from operations of the
Operating
Partnerships.

     The Fund is currently accruing the fund management fee.
Pursuant to the
Partnership Agreement, such liabilities will be deferred until
the Fund
receives sales of refinancing proceeds from Operating
Partnerships which will
be used to satisfy such liabilities.  The Fund's working capital
and sources
of liquidity coupled with affiliated party liability accruals
allow sufficient
levels of liquidity to meet the third party obligations of the
Fund.   The
Fund is currently unaware of any trends which would create
insufficient
liquidity to meet future third party obligations.

Capital Resources
-----------------
     The Fund offered BACs in a Public Offering declared
effective by the
Securities and Exchange Commission on January 24, 1992.  The Fund
received
$38,705,000, $54,293,000, $50,000,000, $36,162,000 and
$40,800,000
representing 3,870,500, 5,429,402, 5,000,000, 3,616,200 and
4,080,000 BACs
from investors admitted as BAC Holders in Series 15, Series 16,
Series 17,
Series 18, and Series 19, respectively.  The Public Offering was
completed on
December 17, 1993.

(Series 15)  The Fund commenced offering BACs in Series 15 on
January 24,
1992.  Offers and sales of BACs in Series 15  were completed on
June 26, 1992.
The Fund has committed proceeds to pay initial and additional
installments of
capital contributions to 68 Operating Partnerships in the amount
of
$28,257,701.

     During the quarter ended December 31, 1998, none of Series
15 net
offering proceeds had been used to pay capital contributions.
Series 15
net offering proceeds in the amount of $32,922 remain to be used
by the Fund
to pay remaining capital contributions to the Operating
Partnerships that  Series 15 has invested in as of December 31,
1998.

(Series 16)  The Fund commenced offering BACs in Series 16 on
July 13, 1992.
Offers and sales of BACs in Series 16 were completed on December
28, 1992.
The Fund has committed proceeds to pay initial and additional
installments of
capital contributions to 64 Operating Partnerships in the amount
of
$39,579,774.

                                     46

     During the quarter ended December 31, 1998, $1,500 of Series
16 net
offering proceeds had been used to pay capital contributions.
Series 16 net
offering proceeds in the amount of $143,811 remain to be used by
the Fund to
pay remaining capital contributions to the Operating Partnerships
that Series
16 has invested in as of December 31, 1998.

(Series 17)  The Fund commenced offering BACs in Series 17 on
January 24,
1993.  Offers and sales of BACs in Series 17 were completed on
June 17, 1993.
The Fund has committed proceeds to pay initial and additional
installments of
capital contributions to 49 Operating Partnerships in the amount
of
$36,538,204.

     During the quarter ended December 31, 1998, none of Series
17 net offering proceeds had been used to pay capital
contributions.  Series 17 net offering proceeds in the amount of
$402,948 remain to be used by the Fund to pay remaining capital
contributions to the Operating Partnerships that Series 17 has
invested in as of December 31, 1998.

(Series 18)  The Fund commenced offering BACs in Series 18 on
June 17, 1993.
Offers and sales of BACs in Series 18 were completed on September
22, 1993.
The Fund has committed proceeds to pay initial and additional
installments of
capital contributions to 34 operating Partnerships in the amount
of
$26,442,202.

     During the quarter ended December 31, 1998, 536,350 of
Series 18 net offering proceeds had been used to pay capital
contributions.  Series 18 net offering proceeds in the amount of
$18,554 remain to be used by the Fund to pay remaining capital
contributions to the Operating Partnerships that Series 18 has
invested in as of December 31, 1998.

(Series 19).  The Fund commenced offering BACs in Series 19 on
October 8,
1993.  Offers and sales of BACs in Series 19 were completed on
December 17,
1993.  The Fund has committed proceeds to pay initial and
additional
installments of capital contributions to 26 Operating
Partnerships in the
amount of $29,614,506.

     During the quarter ended December 31, 1998, none of Series
19 net
offering proceeds had been used to pay capital contributions.
Series 19 net
offering proceeds in the amount of $463,000 remain to be used by
the Fund to
pay remaining capital contributions to the Operating Partnerships
that Series
19 has invested in as of December 31, 1998.




Results of Operations
---------------------
     As of December 31, 1998 and 1997 the Fund held limited
partnership interests in 241 Operating Partnerships.  In each
instance the Apartment Complex owned by the applicable Operating
Partnership is eligible for the

                                     47

Federal Housing Tax Credit.  Occupancy of a unit in each
Apartment Complex which initially complied with the Minimum
Set-Aside Test (i.e., occupancy by tenants with incomes equal to
no more than a certain percentage of area median income) and the
Rent Restriction Test (i.e., gross rent charged tenants does not
exceed 30% of the applicable income standards) is referred to
hereinafter as "Qualified Occupancy."  Each of the Operating
Partnerships and each of the
respective Apartment Complexes are described more fully in the
Prospectus or
applicable report on Form 8-K.  The General Partner believes that
there is
adequate casualty insurance on the properties.

     The results of operations for future periods are likely to
vary from those for the period ended December 31, 1998.  The
losses from Operating
Partnerships reported for this interim period are not necessarily
indicative
of the results anticipated for future periods as some of these
Operating
Partnerships are in the lease-up phase.

     The Fund incurred a fund management fee to Boston Capital
Asset Management Limited Partnerships (formerly Boston Capital
Communications Limited Partnership) in an amount equal to .5
percent of the aggregate cost of
the apartment complexes owned by the Operating Partnerships, less
the amount
of certain asset management and reporting fees paid by the
Operating
Partnerships.  The fund management fees incurred for the quarter
ended
December 31, 1998 for Series 15, Series 16, Series 17, Series 18
and Series
19 were $121,266, $170,151, $126,864, $73,119, and $95,764
respectively.

     The Fund's investment objectives do not include receipt of
significant cash distributions from the Operating Partnerships in
which it has invested or
intends to invest.  The Fund's investments in Operating
Partnerships have been
made principally with a view towards realization of Federal
Housing Tax Credits for allocation to its partners and BAC
holders.

(Series 15)  As of December 31, 1998 and 1997, the average
qualified
occupancy for the series was 100% and 99.9%, respectively.  The
series had a
total of 68 properties at December 31, 1998, 68 of which were at
100%
qualified occupancy.

     For the nine months being reported Series 15 reflects a net
loss from
Operating Partnerships of $2,013,665.  When adjusted for
depreciation,
which is a non-cash item, the Operating Partnerships reflect
positive
operations of $801,996.  This is an interim period estimate; it
is not
necessarily indicative of the final year end results.





                                  48



     The physical occupancy of California Investors VII Limited
Partnership (Summit Ridge Apartments/Longhorn Pavillion) as of
December 31, 1998 was 95%.  The property had previously suffered
operational difficulties due to more expensive debt and high
expenses.  As a result of a diligent effort to control costs, the
property has generated a positive operational cash flow year-to-
date.  The Operating General Partner is optimistic about the
continued positive prospects for this property.
     
     The Operating General Partner of Hidden Cove Apartments
(Hidden Cove) continues to incur operating deficits due to high
operating expenses.  The Operating General Partner is funding the
capital improvement plan established by the new management
company.  Average occupancy at the property remains at 95%.  At
this time, the Operating General Partner is working with the
management company to develop the 1999 budget and capital
improvement plan.  In addition, the Operating General Partner has
begun to approach several local lenders regarding refinancing the
property's permanent loan.

     The Operating General Partner and the management company of
School Street I Limited Partnership (School Street Apts. I) were
removed and replaced during 1997.  In the transition, occupancies
suffered and as a result, a leasing agent and new management
company were hired by the new Operating General Partner to rent
the vacant units.  Due to the unresponsiveness of the management
company, a third management company was hired in October 1998.
Occupancy was at approximately 81% in December 1998.  It is
anticipated that all units will be fully leased within the next
three months.  In addition, a refinancing application has been
filed with the state housing agency, in hopes to further improve
operations.  Any capital needs are anticipated to be addressed as
part of the refinancing package.  The interest rate was reduced
to 7.25% and this rate became effective on January 1, 1999.

(Series 16)  As of December 31, 1998 and 1997, the average
qualified
occupancy for the series was 99.6% for both years. The series had
a
total of 64 properties at December 31, 1998.  Out of the total,
61 had 100%
qualified occupancy.

     For the nine months being reported Series 16 reflects a net
loss from
Operating Partnerships of $2,624,975.  When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflect positive
operations of
$771,773.  This is an interim period estimate; it is not
necessarily
indicative of the final year end results.

     The Operating General Partner of Mariner's Pointe Limited
Partnership I and Mariner's Pointe Limited Partnership II
(Mariner's Pointe Apartment and Mariners's Pointe Apartments II)
pledged his general partner interest to an unaffiliated lending
institution in violation of the Operating Partnership Agreement.
As this was a violation of the terms of the agreement, the
Operating General Partner and the management company were removed
and replaced during 1997. The property operated with deficits
during 1997 due to vacancies, uncollected rents and high
operating expenses.  The new management company continues to
focus on reducing the property's operating expenses and reducing
     
                                  49

vacancies.  The Operating General Partner will be monitoring the
situation with the management company.  To further reduce costs
the Operating General Partner is negotiating with the lender to
restructure the property's debt.  Debt restructure would include
a new second mortgage to fund capital needs,  any debt
restructure will require the Investment Limited Partner's
approval.    Occupancy has slipped from 100% to 93% during 1998.

(Series 17)  As of December 31, 1998 and 1997, the average
qualified
occupancy for the series was 99.7% for both years.  The series
had a
total of 49 properties at December 31, 1998.  Out of the total 48
had 100%
qualified occupancy.

     For the nine months being reported Series 17 reflects a net
loss from
Operating Partnerships of $2,524,324.  When adjusted for
depreciation, which,
is a non-cash item, the Operating Partnerships reflect positive
operations of $678,706. This is an interim period estimate; it is
not necessarily indicative of the final year end results.

     Annadale Housing Partners (Kingsview Manor & Estates) has
reported net losses due to operational issues associated with the
property.  Although occupancy has stabilized, economic factors
relevant to the marketplace prevent the necessary rental income
to be generated to cover the operational expenses.  The rental
rates at the property were increased during the last quarter of
1998.  In a step to cut costs even further the Operating General
Partner has initiated loan restructure discussions with the first
lender for more favorable terms.  The Investment General Partner
continues to monitor this situation closely.  Occupancy is at 92%
as of December 31, 1998.
     
      The physical occupancy of California Investors VII Limited
Partnership (Summit Ridge Apartments/Longhorn Pavillion) as of
December 31, 1998 was 95%.  The property had previously suffered
operational difficulties due to more expensive debt and high
expenses.  As a result of a diligent effort to control costs, the
property has generated a positive operational cash flow year-to-
date.  The Operating General Partner is optimistic about the
continued positive prospects for this property.

     The property owned by California Investors VI L.P. (Orchard
Park) continues to suffer from physical occupancy issues.
Occupancy at December 31, 1998 was at 88%.  The occupancy problem
appears to be related to the marketplace, but the management
company has replaced the site manager in hopes that changes in
personnel will stimulate new interest in the property.  The
management company continues to be aggressive with marketing the
property and conducting active outreach.  The Operating General
Partner, with the assistance of a consultant, has developed a new
marketing campaign, which was implemented during the last quarter
of 1998.  In addition, a large recreation facility is expected to
be built adjacent to the property at the end of 1999.  Once this
park is opened, it is expected to enhance the appeal of Orchard
Park Apartments to families.

                           50



(Series 18)  As of December 31, 1998 and 1997 the average
qualified occupancy
for the series was 100%, for both years.  The series had a total
of 34
properties at December 31, 1998, out of the total all had 100%
qualified occupancy.

     For the nine months being reported Series 18 reflects a net
loss from
Operating Partnerships of $1,625,051.  When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflect positive
operations of
$433,522.  This is an interim period estimate; it is not
necessarily
indicative of the final year end results.

     In August 1996 the Investment General Partner was notified
that Virginia Avenue Affordable Limited Partnership (Kristine
Apartments) was named as defendant in a land encroachment
complaint.  Initial efforts to settle the complaint were
unsuccessful, but recently a judgement was issued by which the
Operating Partnership would receive an appropriate quit claim
deed and other title related documents confirming the Operating
Partnership's interest in the disputed property.  The appropriate
title information has been received by the delivery of these
documents and will remove any uncertainty as to the Operating
Partnership's possession of the land.  Additionally, occupancy
started to drop in the fourth quarter of 1998, with a year-end
physical occupancy of 78%.  At this time, the Investment General
Partner is working with the Operating General Partner to select a
new management company.

 (Series 19)  As of December 31, 1998 and 1997 the average
qualified occupancy for the series was 99.8%, and 99.9%,
respectively.  The series had a total of 26 properties at
December 31, 1998, 25 of which were at 100% qualified occupancy.

     For the nine months being reported Series 19 reflects a net
loss from
Operating Partnerships of $2,196,137.  When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflect positive
operations of
$740,870. This is an interim period estimate; it is not
necessarily indicative
of the final year end results.

Year 2000
---------
     As previously stated in the Fund's 10-K, Boston Capital and
its management have reviewed the potential computer problems that
may arise from the century date change known as "Year 2000" or
"Y2K" problem.  We are currently in the process of taking the
necessary precautions to minimize any disruptions.  The majority
of Boston Capital's systems are "Y2K" compliant.  For all
remaining systems we have contacted the vendors to provide us
with the necessary upgrades and replacements.  Boston Capital is
committed to ensuring that the "Y2K" issue will have no impact on
our investors.








                                     51

                               PART II - OTHER INFORMATION


Item 1.  Legal Proceedings

         None

Item 2.  Changes in Securities

         None

Item 3.  Defaults upon Senior Securities

         None

Item 4.  Submission of Matters to a Vote of Security Holders

         None

Item 5.  Other Information

         None

Item 6.  Exhibits and Reports on Form 8-K

         (a)  Exhibits

         None

         (b)  Reports on Form 8-K


















                                     52

                              SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of
1934, the
registrant has duly caused this report to be signed on its behalf
by the
undersigned hereunto duly authorized.

                                BOSTON CAPITAL TAX CREDIT
                                FUND III L.P.



                                By:  Boston Capital Associates
III L.P.




                                By:  C&M Associates d/b/a
                                     Boston Capital Associates



Date:  February 18, 1998          By:  /s/ John P. Manning
                                     -------------------
                                     John P. Manning,
                                     Partner & Principal
Financial
                                     Officer

























                                     53